Use the information below to compute the 2014 taxable income and tax liability for an unmarried taxpayer (age 52 with no dependents). Prepare an analysis showing each item and amount under the appropriate headings of (1) income, (2) gross income exclusions, (3) total gross income, (4)deductions for AGI, (5) AGI, (6) deductions from AGI, and (7) taxable income.

Cash Received

Interest on savings account $ 1,728

Gift of money from parent 1,000

Rent from farmland owned 30,000

Proceeds of life insurance policy received upon parents death 40,000

Nondegree candidate fellowship, granted 8/20/14, of $450 per month

for four months 1,800

Net pay receivedGross salary of $33,000 less $7440 state

and federal income taxes,$2,046 social security taxes and

$479 Medicare Tax 23035

Employers share of health insurance premiums, $4260 0

De minims employee fringe benefi ts valued at $25 0

Company provided parking costing employer $300/month for 12 months 0

Total cash received $97,563

Cash Payments

Expenses of farmland rental (real estate taxes) $ 1,750

Personal living expenses 26,600

Total cash payments $28,350